Uganda Revenue Authority informs all Value Added Tax (VAT) registered taxpayers that a change has been made to the treatment of credit notes issued through EFRIS.

Previously, a credit note was recognised in the VAT return of the month in which the credit note was approved.  The VAT return has been updated to recognise a credit note in the same month in which the corresponding invoice was issued.

This change will affect the VAT returns for the period commencing August 2024 and will have the following key implications;

A. For the Supplier/Seller (Issuer of the credit note)

1. Where the credit note is approved before the return is submitted, the sales value of the supplier will be pre-filled excluding the credit note amount.
2. Where the credit note is approved after submission of the VAT return to which the original invoice relates, the supplier shall amend their VAT return to recognise the effect of the credit note.

B. For the Purchaser/Buyer (Recipient of the credit note)

1. Where the credit note is approved before the return is submitted, the purchase value of the buyer will be pre-filled excluding the credit note amount.
2. Where the credit note is approved after submission of the VAT return to which the original invoice relates, the purchaser/buyer shall amend their VAT return to recognise the impact of the credit note.
3. Failure by the purchaser/buyer to amend the return shall result in the issuance of administrative assessments to reverse the undue credit.

To avoid multiple return amendments, taxpayers are advised to wait until the end of the month in order to declare all approved credit notes during the month.

For more information or assistance, call our toll-free lines 0800117000/0800217000 or 0417444602 (not toll-free) or email us at services@ura.go.ug or WhatsApp on 0772140000.

First date of publication: Wednesday September 11, 2024

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